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CLICO GENERAL INSURANCE On March 31 2011, Sandridge Ltd. and CLICO Holdings signed an agreement for the purchase of CLICO General Insurance. They intend to rebrand the company to Sun General Insurance subject to regulatory approval. They say they are capable of meeting any claims and have the full support of their international Reinsurance partners. As at 29 September 2011 we have not yet seen final documentation. Sandridge Ltd is owned by Mr Bernie Weatherhead and family and has had a long travel insurance relationship with Clico General. The new owners have visited us in St. Vincent and the Grenadines and have given very positive impressions to us, so we are hopeful that this will be a success and we will keep you informed.
CLICO LIFE INSURANCE Clico International LIFE is now under Judicial Management and five proposed solutions are now under consideration (including Liquidation) The other four solutions include restructuring at different levels, dependent on the extent of financial support from Eastern Caribbean Governments. This financial input would need to range from Bds$152 million to Bds$56 million according to the level of support given. Consultations are now in progress in late September 2011. BRITISH AMERICAN British American has been advertised for sale by the Judicial Managers in September 2011. We are hoping that a strong international investor will come forward to restore confidence to policyholders and the public.British American continues to be under Judicial Management of KPMG, appointed by High Court. They cannot accept New business but they ARE allowed to continue existing business and renewals. Many British American staff members are actively seeking alternatives at present. Insurance News This is what we wrote in 2009. Now see the difference in our Breaking News above!Since Friday 30th Janurary 2009 when the news broke, the Caribbean financial sector has been gripped by the saga of the Bailout of C.L. Financial which owns the CLICO and BRITISH AMERICAN companies. The Trinidad Government and Central Bank have given Guarantees, and we are all watching VERY carefully, especially after the Press briefing adressed by the head of Clico Holdings (Barbados) promoting the strength of their Barbados-based companies. That"strength" is now more questionable, now that the Barbados Government is talking about selling Clico Life to someone in Barbados (which must mean Sagicor!)
Throughout Feburary we were contacting Clients, updating and informing. The Clico General side seems more secure- no negative comments yet, but some Clients have been nervous, and have asked us to move them to other insurers. This means moving UP- market to secure insurers with A.M Best certification. Later in Feburary, Sir Alan Stanford is now under suspicion of FRAUD on a grand scale. His Bank of Antigua has been "repossessed"by the Eastern Caribbean Central Bank and Regional Governments. Some Insurance Companies are Likely to lose large Invesments they deposited with Stanford's empire. Watch for whatever March brings, as the Clico and Stanford sagas unfold. Meanwhile, read our "RISKY BUSINESS" Article on a brand-new page! Hurricane Season Tips - Week 1 Even the BEST insurance can't stop the Hurricane, but you can do things to help yourself. Remember that a Hurricane is a natural event, and it only becomes a Disaster because of what WE do, or don't do, Before, During & After the Storm !
1. Let's start with your home or place of business. You will be amazed how many loose objects are lying around on the outside. Every one of these can become a missile, to smash your windows, your car, or even your body. The time to get rid of these potential missiles is NOW, just in case.....
Be Prepared!
2. When did you last check your Roof? Try to pound-in ALL the roofing nails - you can't tell which ones will come loose. Covering them with compound like "Flashband (and others)" is a good way to prevent leaks before they can start! Be Prepared!
3. Engineers and Architects tell us that most roofs blow-off because of pressure INSIDE, not the Wind Outside. Ease the pressure during the storm by keeping some windows or doors partly open, always on the LEEWARD side from the storm. Make sure that you close them, and open the OTHER side during the Eye of the storm.!
Be Prepared!
4. When it comes to securing your roof, Screws are stronger than Nails. Put in roofing screws IN ADDITION to your nails, and you will improve your chances of keeping your roof on!
Be Prepared!
5. Thinking of changing your roof ? Take a look at all the Old-Time buildings around the country - notice the shape of those steep old roofs, and how they do not have any Eaves. You can be sure those old roofs have seen storms come and go. So, take a tip from our grandparents -- they certainly knew what they were doing !!
Be Prepared! Hurricane Season Tips - Week 2 1. Some Insurers are willing to give discounts or special rates for Shutters, Hurricane Clips or Straps. Check around, or ask a professional insurance broker to tell you about the insurance market. Don't wait. Check it now!
2. Looting during or after a storm is NOT covered by your regular Fire & Perils insurance. Businesses need a separate Burglary insurance cover. If anyone tells you that your policy covers Looting, get it in writing! Think about it now!
3.Most Vehicle policies need a special extension to pay for Storm Damage to motor vehicles. "Comprehensive" does not automatically include this cover. If you do not have a "Special Perils" extension, you MIGHT not be covered.
Ask questions, or get someone knowledgeable to examine your policy. Please don't wait until it's too late!
4. Rain is a blessing. that's why you can't insure against rain damage. Your policy will only protect you if the rain results in your property being flooded, OR if the rain is part of a Storm or Hurricane. Check your drains and gutters now!
5. Under insurance cuts down claims. Don't just renew your policy without thought. Check what it would cost to REBUILD your building at today's prices, or to replace your Contents - you might get a shock! Ask what it would cost to insure those figures. There are professionals available who can show you how to structure your payments within your budget. Do not wait till it's too late!
SOME NOTABLE "CONFERENCE CLIPS" From recent Caribbean Insurance Conferences
- A World Bank facility is expected to be made available, which would provide specific amounts to Regional Governments in the event of "Named Storms". The expected payment would increase with the severity of the Storm, e.g. they would pay more for a Category 4 than for a Category 1. - Buildings will need to be designed so that in Earthquakes, the buildings will survive long enough to enable persons to escape and to allow for search and rescue. - Preparedness will not be achievable unless EVERYONE tries to be prepared. This includes having Heavy Equipment on standby or readily available for quick action. - Schools may not be the best Emergency Shelters. Experience has shown that countries recover faster if normality can be restored quickly. This means getting children back to school promptly. - The University of The West Indies has a "Virtual Disaster Library" which can be seen on the U.W.I. Website. - "Civilisation exerts by Geological Consent" i.e. geology can change Without Notice! - The New Orleans Fire Chief reported that Katrina was Category 3 when she hit land, but the storm surge became Category 5 level! - New Orleans saw thousands of Hotel Guests struggling for food and supplies after Hotel Staff were allowed to leave for their own safety. Resorts need to think this through! - Communications can break-down in a Disaster. Make very specific plans to allow for independent actions if communications are lost.
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